The Hawke’s Bay remains king of
the Scoreboard castle, holding onto its gold medal for the
second quarter in a row.

Posting solid numbers across the
board, the Bay topped the charts in guest night growth and
new car sales – one of just two regions to post positive
numbers for annual car sale growth alongside
Manawatu-Whanganui.

With strong housing and retail sectors
continuing to boost the Bay, fortunes could remain rosy in
the region for a while to come, according to ASB chief
economist Nick Tuffley.

“Looking ahead, we see solid
momentum for most of the Bay’s industries and hence we
would be loath to bet against the region notching up a hat
trick of Scoreboard gold medals,” says
Tuffley.

The Central North Island heats
up

Hawke’s Bay, Manawatu-Whanganui and Gisborne
have dominated the scoreboard this quarter, taking out the
gold, silver and bronze medals, respectively, followed
closely by Wellington in fourth.

All four regions managed
to claim a five-star rating, helped no doubt by double-digit
annual house price growth in each area. For
Manawatu-Wanganui, topping the annual job growth stats
helped it jump from bronze last quarter to silver.

“For the remainder of 2019, we
expect the healthy agricultural outlook to translate into
healthy results on the Scoreboard. Thus, the million dollar
question becomes: can the region claim a gold medal at some
stage this year?” says Tuffley.

“Looking at
Wellington, the region remained fairly stable, climbing one
spot this quarter. The economic drivers remain similar to
recent quarters, with the strong labour market probably the
outstanding feature,” says Tuffley.

“Looking beyond
the quarter and with the Government’s foot still on the
fiscal gas, we anticipate the Capital’s economic
‘wellbeing’ is likely to remain strong over the rest of
the year,” says Tuffley.

Gisborne takes out
‘most improved’ rising 10 places.

The first
city in the world to see the sun, Gisborne is shining this
quarter after climbing a solid ten places into third,
claiming a five-star rating along with its bronze
medal.

Construction in the region was up 48% annually,
with house prices up 13.2% annually – the highest across
the country.

“Gisborne topped the nationwide stats on
building consent issuance and annual house price growth. The
region’s retail sector also fired over the summer months.
As a result, we’ve bumped Gisborne up to a five-star
rating and anticipate that the good times are likely to roll
on over the remainder of the year.

Canterbury’s four-star status short lived as it
falls 10 places

After spectacularly climbing
eleven places last quarter, Canterbury has slid right back
down the ranks to 14th on the
Scoreboard.

“Canterbury’s economic performance is not
quite as emphatic and consistent as the region’s super
rugby team, down from 4th to 14th,” says Tuffley.

“The region is still working through the transition
from past strong construction growth to the traditional
drivers. Employment has been soggy after five years of
robust growth and, unsurprisingly, retail spending has been
subdued,” says Tuffley.

“The housing market is in an
interesting spot. Prices have been weak. But sales turnover
growth was 3rd fastest over the year, and contrasted with
outright declines in most other regions. The number of homes
for sale has fallen over the past six months, another sign
the market may be turning the corner. The Auckland market
(and Blues) can only look at Canterbury wistfully,” says
Tuffley.

Marlborough in the doldrums at the bottom
of the scoreboard

A lack of solid numbers on the
board has seen Marlborough’s soft patch continue, with the
region sliding one place to the bottom of the
table.

Retail growth is slow at just 2.2% annually and
construction has pulled back from its 2017 surge.

“There
is nothing particularly bad happening within the region, it
is just missing out on the food and forestry bandwagon that
many other regions are riding,” says Tuffley.

“For
example, one key wine market, the UK, is afflicted with a
weak exchange rate amidst Brexit confusion. Hopefully
Theresa May drowns her sorrows (or toasts with relief) with
a good Marlborough drop,” says Tuffley.

In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.

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We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.

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